Post by icemandios on Aug 28, 2023 18:00:46 GMT
August 28, 2023 10:07 AM EDT
Pharma
Law
FTC pauses challenge of Amgen's $28B Horizon takeover to consider settlement
Amber Tong
Senior Editor
The FTC is pausing its challenge of Amgen’s proposed $28 billion buyout of Horizon Therapeutics for several weeks to explore alternative ways of resolving the case, including a possible settlement.
The move, disclosed in a filing on the FTC’s website, marks the latest twist in a case that sparked outcry from drugmakers, claiming it would cast a cloud over biopharma dealmaking. As the FTC takes time to consider what it calls a “proper resolution,” it also opens the door to the deal closing without a legal fight.
The antitrust watchdog has historically taken issue with the combination of companies with overlapping products. But the Amgen-Horizon case marked a push by the FTC to move its antitrust work into new types of business conduct,what the agency said in this case was the potential for Amgen to use its market power with payers to give Horizon drugs an unfair advantage.
In a statement issued Friday, Amgen said it has been “consistent with the Commission, the courts and the public that we have no reason, ability or intention to bundle Horizon’s Tepezza or Krystexxa with any of our products and will not do so.”
“We would be pleased if our commitment were honored instead of going through a lengthy court process,” the statement read. “That said, we are prepared to demonstrate to the courts that there is no legal or factual reason to prohibit this acquisition of Horizon and to finally bring medicines to more patients suffering from rare diseases.”
The FTC is suspending its administrative complaint filed in June — which is related but separate from a federal lawsuit, filed in May, seeking to block the deal. The states of California, Illinois, Minnesota, New York, Washington and Wisconsin have also joined the FTC’s lawsuit in calling for a preliminary injunction.
On Friday, both PhRMA and BIO — two of the largest industry trade groups — filed amicus briefs on that lawsuit. In its filing, PhRMA underscored “the novelty of the theory underlying the FTC’s lawsuit” may “stifle innovation and harm patients.”
Amgen and Horizon have similarly argued that the FTC’s effort to stop the deal is “as misguided as it is unprecedented.” The two companies have said they expect to close the deal by mid-December.
Per the FTC’s filing, the administrative law judge overseeing its adjudication had encouraged the agency’s lawyers to discuss a settlement with the companies. After consulting Amgen and Horizon, as well as the states involved, the commission’s lawyers concluded “it would be appropriate to take steps to allow for discussion with the Commission regarding the proper resolution of this matter.”
The lawyers also urged the FTC to act quickly and resolve the case as an evidentiary hearing for the federal proceeding begins in three weeks in mid-September.
“If a resolution of this matter can be achieved, time is of the essence to avoid unnecessary expenditures of resources relating to litigation,” they wrote.
Based on the order issued from the FTC, the case is withdrawn from adjudication until Sept. 18.
Pharma
Law
FTC pauses challenge of Amgen's $28B Horizon takeover to consider settlement
Amber Tong
Senior Editor
The FTC is pausing its challenge of Amgen’s proposed $28 billion buyout of Horizon Therapeutics for several weeks to explore alternative ways of resolving the case, including a possible settlement.
The move, disclosed in a filing on the FTC’s website, marks the latest twist in a case that sparked outcry from drugmakers, claiming it would cast a cloud over biopharma dealmaking. As the FTC takes time to consider what it calls a “proper resolution,” it also opens the door to the deal closing without a legal fight.
The antitrust watchdog has historically taken issue with the combination of companies with overlapping products. But the Amgen-Horizon case marked a push by the FTC to move its antitrust work into new types of business conduct,what the agency said in this case was the potential for Amgen to use its market power with payers to give Horizon drugs an unfair advantage.
In a statement issued Friday, Amgen said it has been “consistent with the Commission, the courts and the public that we have no reason, ability or intention to bundle Horizon’s Tepezza or Krystexxa with any of our products and will not do so.”
“We would be pleased if our commitment were honored instead of going through a lengthy court process,” the statement read. “That said, we are prepared to demonstrate to the courts that there is no legal or factual reason to prohibit this acquisition of Horizon and to finally bring medicines to more patients suffering from rare diseases.”
The FTC is suspending its administrative complaint filed in June — which is related but separate from a federal lawsuit, filed in May, seeking to block the deal. The states of California, Illinois, Minnesota, New York, Washington and Wisconsin have also joined the FTC’s lawsuit in calling for a preliminary injunction.
On Friday, both PhRMA and BIO — two of the largest industry trade groups — filed amicus briefs on that lawsuit. In its filing, PhRMA underscored “the novelty of the theory underlying the FTC’s lawsuit” may “stifle innovation and harm patients.”
Amgen and Horizon have similarly argued that the FTC’s effort to stop the deal is “as misguided as it is unprecedented.” The two companies have said they expect to close the deal by mid-December.
Per the FTC’s filing, the administrative law judge overseeing its adjudication had encouraged the agency’s lawyers to discuss a settlement with the companies. After consulting Amgen and Horizon, as well as the states involved, the commission’s lawyers concluded “it would be appropriate to take steps to allow for discussion with the Commission regarding the proper resolution of this matter.”
The lawyers also urged the FTC to act quickly and resolve the case as an evidentiary hearing for the federal proceeding begins in three weeks in mid-September.
“If a resolution of this matter can be achieved, time is of the essence to avoid unnecessary expenditures of resources relating to litigation,” they wrote.
Based on the order issued from the FTC, the case is withdrawn from adjudication until Sept. 18.